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Articles at Valuable Contenten-usConvince Subprime Lenders: Get Auto Loan Approval easilyhttp://www.valuable-content.com/finance/convince-subprime-lenders-get-auto-loan-approval-easily.html
http://www.valuable-content.com/finance/convince-subprime-lenders-get-auto-loan-approval-easily.htmlThu, 04 Apr 2019 01:19:28 +0000Buying a new car is a big and exciting experience. Sadly, for Americans with credit issues, the happy experience can turn into a nightmare. Constant auto loan rejections and exorbitant interest rates can affect your morale and keep you away from buying a car. If your credit score is not optimal, avoid a traditional lender such as a bank or a credit union and seek the help of a subprime lender.

Subprime lending companies are those financial institutions that help car buyers with less-than-perfect credit history. If you have a bad credit score or have a history of repossession and bankruptcy, it is best to work with subprime lenders. They have relaxed lending criteria and do not expect you to have a stellar credit score. You can get a subprime auto loan even when your credit score is close to 500. So, does that mean anyone can get an auto loan from a subprime lender? Is it easy to convince them?

What are the Common Red Flags for Subprime Lenders?

1. The Income Issues

When it comes to reporting their incomes, car buyers often make the mistake of mentioning their net monthly income. Subprime lenders are interested in knowing your gross monthly income. It is the income that you earn before taxes and deductions. It includes your total income before taxes, Medicare, FICA, etc. Lenders require you to earn at least $2000 as gross monthly income. And, if you report your net monthly income, it may not pass the lender’s stipulation. So, make sure that you mention your gross monthly income.

Another red flag for a subprime lender is low income. If your income is insufficient to make regular payments, lenders will reject your loan application. So, do not under-report your income to the IRS. You can get an auto loan with multiple part-time jobs. Although make sure that you calculate your total income by including cash and non-cash tips. Another way of convincing a subprime lender is to have a co-applicant who can strengthen your loan application.

2. History of Late Payments

Subprime lenders are wary of car loan applicants who have a steady history of late payments. If you have a few episodes of late payments due to unfavorable instances such as job loss, accident or prolonged illness, lenders can cut you some slack. But, if you have a habit of missing out on a few payments and your credit report includes repossession, getting approval for a subprime auto loan can get difficult.

The solution is to manifest yourself as a responsible applicant. Clear your credit score of errors. Pay off a few debts before applying for a car loan. Making a hefty down payment will convince the lender of your financial condition and help you gain approval even with late payments in the past. You can also convince the lender by promising to set up automatic/recurring payments for the auto loan.

3. Inadequate Job History

Stable job history is one of the prerequisites for obtaining low-interest rates. But, if you are new to the job, it can become a red flag for subprime lenders. They understand the need for changing a job to avail better opportunities. But, if you have been moving from one job to another in a quick succession of time, the lender may feel that you are not serious about your career. And without stable employment, you will be facing a situation of repossession in the near future.

Lenders require at least two years of continuous employment history. If you have changed the job in the same industry, it won’t be a problem. But, if you are constantly switching careers, approval can get difficult. In such situations, obtain recommendations from your past and current employers. You can even apply with a cosigner to reduce the risk. Spend time in choosing the right cosigner with a good credit score and stable financial history.

Work with Reputed Subprime Lenders for Affordable Car Buying

Just because your credit history is not impeccable, it doesn’t mean you need to shoulder the burden of high-interest rates. Tackle the possible red flags and strengthen your loan application. Once you have reduced the risk factor associated with your financial habits, convincing a reputed subprime lender will become a piece of cake. Understand the loan terms offered to you and say yes only when you have done your homework.

Remember bad credit history is your past. Do not make a hasty car buying decision and make it your future as well.

]]>What Steps to ensure for making the Right Budget for Your First Car?http://www.valuable-content.com/finance/what-steps-to-ensure-for-making-the-right-budget-for-your-first-car.html
http://www.valuable-content.com/finance/what-steps-to-ensure-for-making-the-right-budget-for-your-first-car.htmlSat, 23 Mar 2019 23:23:10 +0000Buying your own car is usually the first monumental purchase, mostly for young adults. You may require a new car for college or traveling to work. Making the right car purchase is an essential task as you are investing a huge amount of money into it. However, with the help of the correct budgetary tools and tips, you can buy the right car for yourself.

Calculate & Measure: Tips for setting a Budget for your First Car

The following tools will help you ascertain the correct method of budgeting your new car and the required guidelines to score a great deal.

1. Income Vs. Cost of Living

The most important question to consider while buying your car for the first time is: What is my budget? Always set a budget first and then start looking for a car. The simple way of ascertaining the budget for your first car is to calculate your cost of living. The cost of living is the amount that you spend on rent or mortgage, food and health insurance. The amount that remains after deducting your expenses from the monthly income is the amount that you can spend on car payments.

2. Car Overheads

The money that you spend on your car is not limited to monthly payments towards your auto loan. Other associated costs also make up for a fair share of the monthly car expenditure. The gas that you utilize will depend on the mileage and can cost you $75-$100 approximately. Another overhead cost that you should consider is the insurance of the car. While insurance depends on the age and history of the car, it can cost you close to $80-$100 per month. As compared to your monthly payments, the overhead costs may look minimal. However, it is a good idea to budget the overall amount for the purchase of your first car.

3. Financing Saviors

A great way to save money and manage your budget is to get the right car financing program. Pre-approved auto loans are a great way to fix your budget. You can also narrow down your car options once you have a pre-approved auto loan. A co-signer will be useful if you are applying for the first time. While negotiating the deal, paying more down payment will reduce your monthly payments. Additionally, you can shop around through online auto financing companies to get the best interest rates for your car.

The above-mentioned financing tips will surely help you to create a budget in the right manner.

The Budget comes First for a First-Time Car Buyer

Budgeting and calculating what to spend is essential for every purchase. When you set out to purchase your first car, glance through online publications such as Kelley Blue Book so as to make sure how much a car can approximately cost you. Speak to owners who are using the same car you want to buy and take reviews regarding its functioning. Remember, making a budget and adopting a cautious approach will help you make an informed car buying decision.

Congratulations on deciding to buy your first car! Do not worry about applying for your first car loan. FastAutoLoanApproval.com has you covered. Apply now to enjoy quick approval on no credit auto loans. Co-signer is not compulsory.

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Congratulations on deciding to buy your first car! Do not worry about applying for your first car loan. we have got your back. Apply now to enjoy quick approval on no credit auto loans. Co-signer is not compulsory.

]]>Don’t Be A Fool: Take Precautionary Measures to grab the Best Car Dealhttp://www.valuable-content.com/finance/dont-be-a-fool-take-precautionary-measures-to-grab-the-best-car-deal.html
http://www.valuable-content.com/finance/dont-be-a-fool-take-precautionary-measures-to-grab-the-best-car-deal.htmlFri, 22 Mar 2019 22:33:16 +0000April Fool’s Day comes with the common tradition of jokes and pranks. It is common to make a fool out of each other. But when it comes to car buying, you should make sure you do not get fooled on April Fool’s Day. The mistakes you make while you buy your car can cause you to pay for it in the long run. Therefore, it is important that you stay aware of the possible traps and take precautionary steps to avoid car buying disasters.

Car Buying Tips: Essential Tools to Not Be A Fool

Take note of the common mistakes that you can eliminate while making the purchase. Also, learn which precautionary measures are necessary to ensure a financially beneficial deal.

1. Mistake: Negotiating on Monthly Payments

Precautionary Measure: Most people tend to think about car payments as the amount that goes out of their pockets every month. However, the moment you talk about financing, make sure you consider the value of the car in its entirety. Always start by negotiating on the price of the car, financing in terms of interest rates and then the trade-in value of your old car, respectively. Avoid the mistake of negotiating by monthly payments as you will end up having no idea about the total cost of the car. Instead, negotiate on the entire value and then focus on lowering your monthly payments.

2. Mistake: Restricting Car Models

Precautionary Measure: A common mistake while buying a car is to fall in love with a specific make and model. You automatically restrict your options when you are not open to selecting different car models. In the process of a rigid selection, you may miss out on other car models that better suit your needs and requirements. Therefore, when you step into the dealership lot, put aside your emotions and choose a car that matches your needs, has decent reviews and falls in your budget.

3. Mistake: Delayed Financing

Precautionary Measure: The actual amount of your car and the total cost of owning the vehicle depends not only on your negotiation skills but also on your financing knowledge and prowess. Do not wait to think about car financing until you enter the dealership lot. Shop around various banks and browse online auto financing companies. Gain knowledge on the current value of the interest rates and the price of the car. The best option is to get a preapproved auto loan that will secure your financing and help you make a faster car buying decision.

Pro Car Buying Tip: Ensure Precaution This April Fool’s Day

When you set out to purchase your car, always be aware of the deal offered to you. Every car has certain unnecessary extras and you could end up saving up to $200 by eliminating such charges. Also, make sure you research the correct value of your current car, in case you are willing to trade it in for a new one. All in all, if you are focused while negotiating and understand how car financing works, you will not be fooled by the dealer’s tactics.

]]>How to Analyze the Impact of an Auto Loan on your Credit Score?http://www.valuable-content.com/finance/how-to-analyze-the-impact-of-an-auto-loan-on-your-credit-score.html
http://www.valuable-content.com/finance/how-to-analyze-the-impact-of-an-auto-loan-on-your-credit-score.htmlTue, 19 Mar 2019 22:17:34 +0000A credit score is an important element that assists lenders to check your creditworthiness. A higher credit score displays a faith in your word that you will make payments on time. General questions that arise while auto loan shopping include: What happens when you apply for an auto loan to purchase a car? How does an auto loan change your credit score? Analyze the following points in the light of your current situation and understand how an auto loan will affect your credit score.

Does Applying for an Auto Loan reduce my Credit Score?

Often car buyers are worried about a drop in their credit score. But, do not worry about the reduction in your score. Learn how an auto loan impacts your score so that you can make an informed decision.

1. Hard Inquiries & Rate Shopping

The moment you apply for an auto loan and the lender requests your credit report, the inquiry is treated as a hard inquiry. Many inquiries from different lenders indicate a potential for degrading the credit score. However, the credit rating company observes the multiple inquiries as a single entry of auto loan shopping as long as the entries are within a limited time period. Timely payments, such as auto-generated payment models, will help you to recover any credit points that you lost because of hard inquiries.

2. Payment History

The most important element in a credit report is your payment history. Once the lender pulls your credit report, it will indicate your payment behavior. If you have ensured timely payments in the past and continue to walk on the same path in the future, your score will improve. However, losing out on a payment for a long period of time can damage your credit score and also put your car in the risk of repossession. Therefore, it is imperative to maintain your monthly payments as your payment history has the biggest impact on your credit score.

3. Variety of Credit

The different types of credit sources that are reflected on your credit report affect the lender’s decision. Also, it has an impact on your credit score. Many credit scoring models look at the number of credit cards you use on a regular basis. An auto loan is a different type of credit source, namely an installment credit wherein you repay the principal and interest amount spread over a few years. Obtaining an auto loan will be an additional variety of loan to your credit mix. And, it will give your credit score a definite boost.

Applying for an Auto Loan is Good for your Credit Score

After analyzing the impact of applying for an auto loan, the positive effects outweigh the negative elements. Make sure you check your credit report for any errors that may unknowingly decrease your credit score. Every year you are eligible to request free copies of your credit report. The decision to apply for an auto loan can help if you are responsible. Remember to have a payment plan because it will serve you as a financial foundation for strengthening your credit score in the long run.

]]>Moving Forward: Corrective Steps to obtain an Auto Loan after Rejectionhttp://www.valuable-content.com/finance/moving-forward-corrective-steps-to-obtain-an-auto-loan-after-rejection.html
http://www.valuable-content.com/finance/moving-forward-corrective-steps-to-obtain-an-auto-loan-after-rejection.htmlMon, 18 Feb 2019 22:07:46 +0000You go through the process of filling in the paperwork and requesting an auto loan. However, the bank stops you in your tracks and you are headed home with auto loan rejection. Believe it or not, sometimes being turned down for an auto loan can be a good thing. Through rejection, you get the opportunity to analyze your mistakes and fix them at the earliest. There are many ways which can lead you to auto loan approval. The key lies in seeking the important sources and leveraging them.

Effective Remedies to tackle Auto Loan Rejection

Closely examine the below-mentioned suggestions so that the next time you apply for a loan, you enjoy faster approval.

1. Immediate Steps after Auto Loan Rejection

The most important thing to do after getting rejected is to look for the reason. You might receive a letter from the bank or the lender stating the reason for auto loan rejection and why you didn’t make the cut. Once you know the reason for rejection, you can work at fixing the situation before re-applying. Check your recent credit report and correct the mistakes, if any. Also, pay off all your past debts before you look to obtain a new one. However, the most important thing to do after getting rejected is to not lose hope as you can work on your situation, put a strong case forward, re-apply and get approved for an auto loan.

2. Short-Term Steps to improve your Credit Score

There are quite a few ways to increase your creditworthiness in the eyes of the lender. You can apply for your next auto loan with the help of a strong cosigner who will make things easier for you. A huge down payment also lowers the risk and reduces the loan-to-value ratio for the lenders. If you are a student, you can borrow money from your parents and make the down payment. Another source of obtaining an auto loan is an online portal. Several online auto financing companies are available at fingertips.

3. Long-Term Steps to ensure a Stable Financial Situation

Looking forward towards long-term goals is the ultimate key to building a strong financial foundation. Focus on building your credit by making timely payments and clearing off old debt. Additionally, you can ask your lender or bank to generate automatic payment system on your auto loan. It will ensure that you do not have to remember your dates of payment, but only maintain the required balance in your account. Once you start improving your credit score, you can request your creditors to remove any negative information from your credit report. Also, you can work on increasing your current income sources and amount, respectively.

Look Ahead to Better Financial Situation

Despite the rejection of your auto loan request, the days of redeeming your financing situation are surely ahead. By keeping in mind a few important steps for the improvement of your current situation, you can walk into the dealership and choose your favorite car.

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Do not let auto loan rejection take you away from your dream. Buy the car of your choice with the help of a subprime lender. Get guaranteed bad credit auto financing and walk into the dealership with confidence. Ask your lender for no money down car loan and learn how you can buy a car without making down payment.